Nam Long unveils ambitious growth targets for 2021 - 2023

HCM CITY — Nam Long Investment Corporation (HOSE: NLG) targets sales of VNĐ13.519 trillion (US$587.4 million), net revenues of VNĐ4.963 trillion ($215.2 million), profit after tax of VNĐ1.367 trillion ($59.3 million), and profit after tax attributable to the parent company’s shareholders of VNĐ1.152 trillion ($50.06 million) this year.

This represents an increase of 124 percent in total sales and 38 percent in profits from 2020.

Nam Long held its annual general meeting on April 24, and the AGM approved its financial statements for 2020, a number of targets for this year and other important proposals, and elected the board of directors for the new term.

Considering the adverse effect the Covid-19 epidemic has had on the global economy, Việt Nam’s in particular, the targets show a very strong commitment from the board of directors and board of management.

Nam Long’s new board of directors for the 2021- 2026 term

The new BOD for 2021-2026 consists of nine members, some of whom have extensive experience in economic affairs and the real estate market in Việt Nam and five are foreigners, testifying to Nam Long’s desire for transparency and sustainable international governance standards. 

The nine members are Nguyễn Xuân Quang, Trần Thanh Phong and Cao Tấn Thạch (Nam Long Group), Nguyễn Đức Thuấn (founder and Chairman of TBS Group), Chad Ryan Ovel (Amcham Việt Nam chairman), Ziang Tony Ngo (founder and chairman of Everest Vietnam Holdings-Singapore), Ngian Siew Song (former managing director of Tropicana Bhd Group - Malaysia), Kenenth Micheal Atkinson (founder and senior board adviser of Grant Thornton Vietnam) and Joseph Low Kar Yew (chairman of Keppel Land Vietnam). 

Other important proposals approved at the AGM include payment of 15 per cent dividend in cash for 2021, payments of dividends in shares and bonus issue of 15 per cent for 2019 and 2020 that have not been made will be done in 2021, and a private placement of 60 million shares to seize the opportunity to expand its land holdings.

In its development strategy for 2021, Nam Long envisages restructuring itself into business units, each a profit centre that will operate independently.

In the next three years net profits contributed to NLG are expected to grow by 32 per cent per year on average.

Enhancing core business segments

As for its two core business segments, developing land holdings and housing, NLG will raise their efficiency by making strategic business plans for three, five and 10 years with ambitious targets for the short, medium and long terms.

In the next three years Nam Long expects to achieve annual sales growth of 85 per cent and revenue growth of 72 per cent on average in these two core segments. 

It will focus on developing integrated townships such as Southgate (165-hectare Waterpoint phase 1), 26ha Mizuki, Izumi City (190ha Waterfront), Akari, Nam Long – Cần Thơ (43ha) and gradually transforming itself from a leading developer of affordable housing to a builder of integrated townships.

To increase its housing market share, in addition to the affordable housing segment with its popular brands like EHome, Flora and Valora, Nam Long will also develop new product lines in the new segments in HCM City. 

The company also plans to expand to other localities. Hà Nội and certain smaller cities with great economic potential and which attract large number of workers who would have large housing demand will be destinations for its land and housing development segments. 

With respect to investment, Nam Long will standardise its capital allocation and investment, and develop a fund mobilisation strategy of soliciting foreign investment and M&A. 

It plans to issue 60 million shares in a private placement to raise funds to expand its land holdings. 

To raise funds, Nam Long will continue to target domestic and foreign sources for specific projects, while allocating the funds reasonably, flexibly and effectively. 

Diversification of growth

Nam Long is starting to diversify its business activities

In 2021 the company will diversify its growth by completing its eco-system and developing commercial real estate.

The first projects will be implemented at its integrated urban areas to serve the living - working - playing – shopping and education needs not only of Nam Long residents but also the surrounding communities. 

During the implementation, Nam Long will research and create success formulas for each new business segment to ensure the highest safety for all its business activities. 

(Source: Nam Long Group (Hose: NLG))